UK's Land Securities positive on annual earnings after swing to profit
Sees annual EPRA EPS in line with last year and above market view
HY pre-tax profit 243 mln stg vs loss of 193 mln stg yr ago
EPRA NTA per share at 871p at Sept end, above market view
Adds share move in paragraph 2, CEO comment in paragraph 4, analysts' comment in paragraph 6
By Aby Jose Koilparambil
Nov 15 (Reuters) -Land Securities LAND.L forecast annual earnings above market expectations on Friday after the British commercial property firm swung to a half-year profit, boosted by increased tenant occupancy and rental growth in its retail and London assets.
Shares in the FTSE 100 .FTSE company rose about 2% in morning trade, among the top percentage gainers on the blue-chip index.
Britain's commercial property market is showing signs of a recovery following a post-pandemic freeze, with property values stabilising and expectations of further rate cuts in the near term fuelling optimism in the highly leveraged sector.
Land Securities' CEO Mark Allan said in a media call that leasing activity in the company's Central London office portfolio was positive, while its retail portfolio benefited as retailers prioritised store expansion in prime locations like those offered by Landsec, while closing stores in less attractive areas.
The company said EPRA Net Tangible Assets - an industry measure that represents the value of its buildings - rose 1.4% to 871 pence per share, as of Sept. 30, compared with the March-end valuation. This was above company-compiled analysts' estimates of 863 pence.
Peel Hunt analysts said that Landsec's optimistic outlook for both earnings and asset values was encouraging, and a robust balance sheet would provide a buffer amid an uncertain macroeconomic backdrop.
The company, which owns and manages office spaces in Central London serving a wide range of customers from global corporates to small businesses, forecast EPRA earnings per share for the fiscal year ending March 31 in line with the 50.1 pence reported for the previous year, above a company-compiled consensus of 49.3 pence.
Landsec reported a pre-tax profit of 243 million pounds for the six months ended Sept. 30, compared to a loss of 193 million pounds a year earlier.
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu and Susan Fenton
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